1. What’s the outlook for the Australian economy?
The Australian economy is in sharp focus for business leaders right now, and for many, it’s a pain point.
In fact, in our 2023 real estate benchmarking research, business owners cite deteriorating economic conditions as one of the top drivers of profitability decline.
Business leaders can expect the economy to continue slowing in the coming months, though Australia is in a position to avoid a recession, given its strengths such as healthy population growth.
“There are a few big issues for the Australian economy at the moment. One of them is inflation. That is obviously placing pressure on household budgets, and it also means that interest rates are likely to remain high for the time being,” says Macquarie Group Lead Global Economist, Dan Fabbro.
“The second issue is falling productivity in the economy. Productivity is ultimately one of the key drivers of prosperity in an economy, so the fact that it is falling is a concern. It’s also a concern from an inflation perspective – if productivity keeps falling, it will make it harder for inflation to come down,” he says.
“The third key issue is housing affordability. At the moment, housing affordability in some metrics is about as bad as it’s been since the late 1980s.”